Trudeau calls for NAFTA exemptions for cultural industries

Canadian Prime Minister Justin Trudeau says Canada will not sign onto a North American Free Trade Agreement that does not include a dispute resolution mechanism and exemptions for cultural industries. Trudeau says the dispute resolution mechanism in Chapter 19 ensures trade rules are followed.

Speaking in Vancouver, the prime minister also says his government won't sign an updated free trade accord with the United States and Mexico if the deal didn't continue exemptions for Canada's cultural industries, which aims to protect Canada's publishing and broadcast industries. Giving up the exemptions would be tantamount to giving up Canadian sovereignty and identity, he says.

U.S. and Canadian negotiators are set to return to the bargaining table Wednesday.

Trade analysts say the two nations need to present a text to Congress by Oct. 1 in order to join the deal the Trump administration signed with Mexico last week, and before Mexico's new president takes office Dec. 1. Otherwise, President Trump is threatening to move ahead on a deal with Mexico that excludes Canada.

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The United States and Mexico have reached an "understanding" on several critical trade issues following bilateral talks to renegotiate the North American Free Trade Agreement. They will now likely re-engage with Canada to reach a final deal on NAFTA, a primary goal of the Trump administration.

Speaking at the White House on Monday, President Trump said he wanted to change the NAFTA name to the U.S. Mexico Free Trade Agreement. He also reframed the negotiations as two bilateral trade deals.

President Trump's trade announcement has drawn mixed reactions. For some leaders, the fact that Mexican and U.S. negotiators worked out their differences is encouraging. It is a sign that the United States and Canada will be able to do the same. However, others say the deal with Mexico could be disastrous for the U.S.-Canada relationship.